1 Oct 2013 09:49
A freeze in energy prices enforced by the government would be a disastrous
economic policy. We know from the bitter experience of the 1970s what damage it
does: freezing prices while costs rise means industry is unable to invest, so
supply withers. In the 70s we had black-outs and restrictions on energy use. And
when the price freeze inevitably crumbles, we are left with demand much larger
than supply, and an inflationary surge in prices. A policy intended to stabilise
living standards ends up raising the cost of living.
Even more foolish is to announce a populist policy like this is advance, as the
energy companies will do all they can to raise prices ahead of time. More work
for the regulator.
The much better solution is to invest in additional capacity and energy
efficiency, and allow competition to keep the price down. We can all help, by
buying energy-efficient appliances, and insulating our homes. Your council can
provide advice an support to improve your insulation.
Personally I should like to see more investment in alternative energies. They
may not be as easy to switch on and off as oil and gas, but every megawatt hour
produced by solar, wind or tide is a few tonnes less CO2, and we can use our gas
capacity to smooth the peaks and troughs. To help that locally, the new
development plan being prepared by the council should favour developments which
incorporate renewables.
Roger Hirst
Deputy Leader
Brentwood Conservatives